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STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

The word strategy comes from a Greek word “strateos” means general thing. In business the term strategy is used to describe how an organization is going to achieve its overall objectives. Mostly it is concerned with decided alternatives are to be adopted for accomplishment of overall objectives of the organization. Strategy is a plan of action or policy designed to achieve major or overall aims. Mission statement describes what the organization is now, what it wants to become and how you are going to achieve it. Vision statement states “what do we want to be”. Strategic Management is a process involving number of stages from strategy formulation of strategy is not enough it has to implemented properly as well as evaluated to implemented properly as well as evaluated to review the performance. Direct Business Model is the foundation for Dell’s business. Dell maintains a consistent focus on offering the best value and customer. Dell is a trusted technology innovator with a diversified, comprehensive IT portfolio. Dell is a global company committed to its customers and employees. In January 2009, Dell announced that they will withdraw all manufacturing from Limerick and move it to its new plant in the Polish city of Lodz by January 2010. Raised their cost-reduction target to $4 billion. Dell also announced that it aimed to become a "one percent company," giving away 1 % of pre tax profits to education and digital inclusion projects mainly in emerging markets, by February 2010. Mission statement of Dell company is “To provide customers with superb value, high quality, relevant technology, systems, superior service and support and products and services that are easy to purchase and use.” Vision statement of Dell company is “The direct relationship continues throughout the customer experience” Dell company thinking that strategic provides the foundation of the strategic management. By providing an insight into the forces behind the intense competition, by
S.I.E.S COLLEGE OF COMMERCE AND ECONOMICS, SION 1

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY developing a sustaining competitive advantage based on organization core competency. It can be broadly divided into three phases:
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Phase 1: Strategic Formulation Phase 2: Strategic Implementation Phase 3 : Strategic Evaluation And Control

The first step adopted by Dell Corporation was to frame the mission and objectives for the organization. After setting the mission and objectives the next step is to analyses the internal environment. The management conducts the analyses of the external environment and also conducts gap analyses. Then they frame alternative strategies and accomplish the objectives of the firm. Once the strategies are formulated by the Dell company the next stage is strategic implementation. The stages are Formulation of plans, programs and projects, Project implementation, Procedural implementation, Resources and allocation, Structural

implementation, Functional implementation, Behavioral implementation. In next phase the manager tries to assume that the strategic choice is properly implemented and is meeting the objective of the organization. The company designs and customizes products and services to the requirements of the organizations and individuals, and sells an extensive selection of peripheral hardware and computing software.

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STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

PURPOSE OF THE STUDY:The basic purpose behind the study was to get detailed knowledge about the Strategic Management of Dell Company. The study was basically aimed to know more about the Introduction, History, Key towards strategic planning, Strategic Formulation, Strategic Implementation and Strategic Evaluation And Control of Dell Company.

OBJECTIVES OF THE STUDY: To study about Strategic Management of Dell Company.  To study about process of Dell Company.  To study about Key towards strategic planning Dell Company.  To study about Tools of strategy evaluation.  To study about challenges and importance of strategic management.  To study about the various stages of strategic management.

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STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY RESEARCH METHODOLOGY:- SECONDARY DATA LIMITATIONS:-  Primary data is not collected.I.E.  Find very difficult to collect information on strategic management process of particular firm. SION 4 . S.S COLLEGE OF COMMERCE AND ECONOMICS.

what it wants to become and how you are going to achieve it. It is the statement which states the basic purpose of the organizational philosophy means the value. It is the first indicator of how an organization look at its stakeholders. Mostly it is concerned with decided alternatives are to be adopted for accomplishment of overall objectives of the organization. Mission statement describes what the organization is now. Typically mission S.S COLLEGE OF COMMERCE AND ECONOMICS.E. Definition:“Strategy is a plan of action or policy designed to achieve major or overall aims” “Strategy is a unified.I. comprehensive and integrated plan that relates strategic advantages of the business to the challenges of the environment.1 INTRODUCTION TO STRATEGY Meaning:The word strategy comes from a Greek word “strateos” means general thing.2 mission. In business the term strategy is used to describe how an organization is going to achieve its overall objectives. beliefs and the guidelines under which the organization would conduct its business. SION 5 . All strategic decisions flow from corporate mission statement.” 1.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY CHAPTER 1: STRATEGIC MANAGEMENT 1. vision and objectives Mission:A every organization has to defined the basic reason for its existence in terms of mission statement. It is designed to ensure that basic objective of the organization are achieved through proper execution.

Some experts and authors are of the opinion that mission statement states “ what is our business” (present or current position).E. Vision:Some business prepare only the mission statement but some develop mission as well as vision statement. Generally objectives and goals are considered to be same but there are slight difference between them. The objectives are broad aims where as goals are more specific in nature.S COLLEGE OF COMMERCE AND ECONOMICS. Many organisation frame mission as well as vision statement saying that there are difference in them. Ex. states the vision and also specifies important organizational values. SION 6 . Experts say that there are difference between mission and vision statements. Objectives:Objectives are the end which the organization intends to achieve through its existence and operations. Organizational objectives vary from organization to organization. On the other had vision statement states “what do we want to be” (future status or position).STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY statement defines the business of the organization. The objectives they are called as goals but the goal may be to increase market share but the goal may be to increase a market share of a brand by 10% during the current year. In other words when objectives are divided in to sub objectives they are called as goals. S.I.

finance. Definitions:Strategic management can be defined as:1.S COLLEGE OF COMMERCE AND ECONOMICS. S. marketing to achieve organizational objectives. It is the way in which strategist determines the objectives and take strategic decisions. implementing and evaluating the strategies that are framed to enable the organization to achieve its objectives. 3. achieve. SION 7 . Strategic Management focuses on integrating various functions like production. Strategic management is a stream of decisions and action that lead to development of effective strategies to help. corporate objectives. Strategic Management is a continous process of formulating.E. 2.3 introduction to strategic management Meaning:Strategic Management is a process involving number of stages from strategy formulation of strategy is not enough it has to implemented properly as well as evaluated to implemented properly as well as evaluated to review the performance.I.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 1.

S. SION 8 . This process is to be followed in all areas of the business.4 CHARACTERISTICS/FEATURES OF STRATEGIC MANAGEMENT Systematic Process Multiple decision Making Relates to the Environment Universal Applicability Features Of Strategic Management Focus on objectives Long term Planning Top Manageme nt Function 1) Systematic Process:. The whole process is carried on for achievement of these objective only.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 1. implementing and evaluating.E.S COLLEGE OF COMMERCE AND ECONOMICS.Strategies are framed after taking in to consideration the internal and external environment of the business. Strategies may be modified according to the changes in the environment. It is to be considered not only while framing but also while implementing the strategies. 2) Relates to the Environment :. 3) Focus on objectives: The main focus of strategic management is to achieve organizational objectives.I.Strategic management is a systematic process of framing.

Therefore short term objectives are automatically taken care of.I.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 4) Top Management Function :. This is because all organizations need to frame and implement strategies for their survival and growth.Decision regarding strategic management are taken by top management only. 5) Long term Planning :.Strategic Management is concerned with long term planning.Strategic management is applicable to all types of business.E. 7) Multiple decision Making:. It aims at achievement of long term objectives. 6) Universal Applicability :. SION 9 . Lower level management may be given a chance to give their opinions but the final decision is taken by top management only.The process of strategic management involves taking a number of decisions like i) ii) iii) iv) v) vi) Study of internal and external environment Setting of objectives Formulation of strategies Organization and allocation of resources Implementation of strategies Strategy evaluation and control S.S COLLEGE OF COMMERCE AND ECONOMICS.

5. Strategic management takes into account the future and anticipates for it. It brings growth in the organization because it seeks opportunities. 8. thus its efficiency and its success are ensured. With strategic management companies can foresee the events in future and that’s why they can remain stable in the market. Strategic management focuses on proactive approach which enables organization to grasp every opportunity that is available in the market. 1. 9. A strategy is made on rational and logical manner. 3. Strategic management also adds to the reputation of the organization because of consistency that results from organizations success.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 1.5 IMPORTANCE OF STRATEGIC MANAGEMENT A well-formulated strategy can bring various benefits to the organization in present as well as in future. Strategic management reduces frustration because it has been planned in such a way that it follows a procedure. With strategic management organizations can avoid helter & skelter and they can work directionally.S COLLEGE OF COMMERCE AND ECONOMICS. 7. Strategic management looks at the threats present in the external environment and thus companies can either work to get rid of them or else neutralizes the threats in such a way that they become an opportunity for their success. Often companies draw to a close because of lack of proper strategy to run it.I. 4. SION 10 . S. 6. 2.E.

such as international human resource management (IHRM) and S. step in to global operations with the multi-national corporations or use other foreign business operations methods.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 1. SION 11 . Orientation for globalization:Now nearly every business organizations begin to get globalised. there are still many challenges for strategic management in the modern business society. Orientation For Globalization Motive For CSR And Ethics Emerging Ecommerce And Internet Culture Challenges To Strategic Management Active Pressure Group Cut Throat Competition Diversification 1. However. Because of the globalization of operations of in business world there are many new orientations coming out. we know that strategic management includes three aspects which are strategic planning. strategic implementation and control of the 20 strategy in an organization.I.6 challenges to strategic management Through the general introduction.S COLLEGE OF COMMERCE AND ECONOMICS. Almost all the modern organizations have tried strategic management to make sure that they can reach the expected level of performance.E.

foresee the next moves of rivals and build the competitive strategy to defeat competitors in the tough battle. Cut throat competition:When the globalization. S. The strategic management should be capable of identifying diversification of business opportunities and manage them well. Diversification:With increased uncertainty and the rapid changes in business environment. business has become hyper competitive. online selling and online advertising.S COLLEGE OF COMMERCE AND ECONOMICS. 3.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY international finance. The process of company’s strategic management has to be renovated all the time to deal with these new orientations. e-commerce and many other changes emerged in the business society. 4.E. Therefore strategic management must identify these external pressure groups and understand their concerns.I. SION 12 . Companies now engage in diversified operations must diversify the business risk where they focus on more than one business area or industry rather than specializing in one area. 5. the organization cannot survive any longer. The process of strategic management can help to generate competitive intelligence. Active pressure group:Under the modern society. Strategic management process of the business should succeed to change e-commerce motivation into the business process. 2. Emerging e-commerce and internet culture:With the increasing expansion of internet and the technology. the business risk has grown up substantially. some companies have turned attention to e-commerce where they conduct business with electronic means such as online purchasing. there are active pressure groups operating such as environmental activism and consumer protectionism. If you are not using proper competitive strategy.

E.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 6.S COLLEGE OF COMMERCE AND ECONOMICS. Motive for Corporate Social Responsibility (CSR) and ethics:Also. the modern business organizations have to possess corporate social responsibility and ethics to attain their corporate reputation so that it can be more competitive in the environment. S. Strategic management should do researches for possible corporate social responsibility activities and implement those to be in step with expectations of the society. SION 13 .I.

E. It involves following steps. SION 14 .STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY CHAPTER 2: ELEMENTS/PROCESS OF STRATEGIC MANAGEMENT Strategy formulation framing Strategy implementation Strategy evaluation and control The process of strategic management can be divided in to three stages 1) Strategy formulation framing 2) Strategy implementation 3) Strategy evaluation and control I) STAGE 1: STRATEGY FORMULATION OR FRAMING Strategy formulation is also referred to as strategic planning.I.S COLLEGE OF COMMERCE AND ECONOMICS. Framing mission and objectives Analysis of Internal environment Analysis of external environment Framing of alternative strategies Choice of the strategy S.

Out of these alternatives one or some alternatives may be selected. Mission states the basic purpose and management philosophy. Analysis of external environment:External environment includes demand. suppliers. 2. 3.. competition. Every alternative will have some advantages and some disadvantages. analysis. The organization may undergo cost benefits S. 5. Before framing the strategies analysis of these resources has to made to know strength and weakness of the organization.E. lenders. Choice of the strategy:Organization cannot implement all alternative strategies. Analysis of Internal environment:The internal environment includes physical. Framing mission and objectives:The first step in strategy formulation is to decide mission and objectives of the organization. Framing of alternative strategies:After making SWOT analysis management frames strategic alternatives. 4. It should select the best alternative out of several alternatives. financial and human resources.I. SION 15 . The objectives are short term goals which the organization wants the achieve through its strategies. etc.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 1.S COLLEGE OF COMMERCE AND ECONOMICS. government policies. Analysis of external environment is to be made to know opportunities and threats. availability of technology.

I. The regulatory elements that may be applicable are i) Obtaining licenses ii) Capital issue guidelines iii) FEMA regulation iv) Foreign collaboration Regulation S.E.S COLLEGE OF COMMERCE AND ECONOMICS. A plan for carrying out the required activities as to be prepared most importantly the time schedule has to be decided.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY II) STAGE 2: STRATEGY IMPLEMENTATION Once strategies are formulated the next important step is to implement them properly. SION 16 . 2) Procedural implementation:The organization must be aware about regulatory framework applicable to it. This stage generally involves following elements Formulation of Plans and Programs Behavioural Implementation Procedural implementation Functional Implementation Resource Allocation Structural Implementation 1) Formulation of Plans and Programs:After framing strategies small plans are prepared for its implementation.

Culture in the organization does have direct impact on its functioning. IT involves delegation of authority and work among employees.S COLLEGE OF COMMERCE AND ECONOMICS.E. finance manager. frame. The top management may communicate the strategy to the functional heads.I. plans and policies for their function. physical and human resources to various activities.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY v) Regulation relating to import of technology 3) Resource Allocation:Resource allocation deals with arrangement and allotment of financial. HR manager may frame their own plans consistent with overall plans of the organization. SION 17 . social responsibilities taken up by the organization. corporate culture. The resources have to be allocated depending on importance of activities in which department or division. It is needed to 5) Functional Implementation:It deals with implementation of plans and policies of different functions of business. implement the strategies properly. 6) Behavioural Implementation:IT deals with the issues like leadership. Ex. The functional heads may in turn. Marketing manger. S. 4) Structural Implementation :Organization structure is the frame work through which the organization operates.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY III) STAGE 3 : STRATEGY EVALUATION AND CONTROL Strategies have to be evaluated as well as certain control mechanism have to be in placed to ensure achievement of set objectives. S.E. cost or timing for such measurement the employees may be asked to submit various reports periodically. Such implemented strategy has to be evaluated to check the 2) Measuring the Performance:The actual performance of implemented strategy should be measured. SION 18 . This helps to find out deviation if any. 3) Comparision of Actual Performance with the standards :The actual performance of the strategy should be compared with set standards. performance.I. rupee. IT may be measured in terms oif quantity. IT generally involves following procedure Taking corrective actions Calculation of Deviation Comparision of Actual Performance with the standards Measuring the Performance Setting and Implementing strategy 1) Setting and Implementing strategy:Strategy has to be framed and implemented for achievement of organizational goals and objectives.S COLLEGE OF COMMERCE AND ECONOMICS. quality.

I.E. SION 19 . But if it is less than the standard the reasons for the same as well as degree of deviations should be calculated. If actual performance is at par or better than the standard it is not a major concern.S COLLEGE OF COMMERCE AND ECONOMICS. S.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 4) Calculation of Deviation:After the comparison deviation from set standards can be calculated. 5) Taking corrective actions :If actual performance is less than the standard corrective actions have to be taken for overcoming the deviations/ Such action is needed to avoid mistakes in future and improve the performance.

S. b) Earning Per Share :This ratio indicates earnings of on one equity share. This means dividend is paid to preference shareholder first and then to equity shareholder. following techniques can be used While doing financial evaluation 1) Financial Ratio: a) Return on investment/Return on Capital Employed :This ratio measures the firms ability to earn operating profits as a return on capital employed or total asset.S COLLEGE OF COMMERCE AND ECONOMICS. SION 20 . quantity. Return employed= NPBIT x 100 C. This is mainly because it can be expressed in the form of rupee or volume i.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY CHAPTER 3: TOOLS OF STRATEGY EVALUTION In the process of strategy evaluation actual performance of the business has to be measured there are various tools or techniques for such measurement I) FINANCIAL TOLL OR FINANCIAL EVALUATION :Financial evaluation is considered to be the best way to strategy evaluation.E/Total assets This ratio is very important for prospective investors. This ratio is also useful for existing and prospective investors.e.E. In other words financial evaluation cab be quantified easily. It show the profitability of the company available to equity shareholder Earning per share= Profit Available to Equity Shareholder Number of equity share Profit available to equity shareholder is arrived at after deducting preference dividend from net profit after tax.I.

It can be for one year or half year or even for a quarter. net presen value.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY c) Price Earning Ratio :This ratio compares market price oof the share with the EPS. S. Market price increases if EPS more. Capital Budget a) Revenue Budget:Budget prepared for operating or day to day activities are called as revenue budgets. the requirement of cash during a particular period is calculated.I. purchase budget. Internal rate of return are used for capital investment proposal.The most important revenue budget is cash budget. 2) Budgets: Budget is an estimate of activities to be undertaken during decided period of time. This activities give benefit for more than one one year. production budget. They include purchase of new fixed assets.S COLLEGE OF COMMERCE AND ECONOMICS. They can be classified in to two categories. advertising budget. profitability index. expansion. All incomes and expenses in cash during that period are considered while preparing cash budget. replacement of old assets with new one. SION 21 . modernization etc. Revenue Budget b. a. the techniques like pay back period. b) Captital Budgets:Budgets preprared for long term activities are called as capital budgets. They are generally prepared for less than one year. It also indicates net cash position of the business at the beginning and at the end of the period. sales budget. PE ratio = Market price per share EPS Higher ratio indicates that the share is in demand and investors are ready to pay more price for it. Most common revenue budgets are cash budgets. There are different types of budget that are prepared by an organisation.E. In cash budget.

The goal of gap analysis is to identify the gap between optimum allocation of resources and current level of allocation. IV) RESPONSIBILITY CENTER:It is a new accounting concept called as responsibility accounting for large diversified organizations. SION 22 .S COLLEGE OF COMMERCE AND ECONOMICS. 2) Cost centre: A segment that generates cost but no revenue.E. The gap analysis involves determining documenting and approving the variances between business requirements and current capabilities. It is mainly used to access the value of money of very large projects private sector organizations make more use of this technique. It is a formal study of what the business is doing currently and where it wants to go in future. During cost benefit analysis monetary values may be assigned even to non monetary factors like risk. S. Therefore the activities are decentralized or separated into manageable part. The comparison between expected performance and the current performance is called as gap analysis. 3) Profit centre: A segment that generates both revenue and cost. The practice of cost benefit analysis differs from country to country and even from sector to sector. These centre are1) Revenue Centre : A segment that mainly generate cost but no revenue. This formal process is referred to as cost benefit analysis. The two are compared with each other to choose the best or most profitable option.I. The process involves monetary calculation of initial and ongoing expenses verses expected returns. This part or segments are called as responsibility centers. It is impossible to manage centrally. The process involves calculation of direct as well as indirect expected costs along with total expected benefits. III) COST BENEFIT ANALYSIS:It calculate cost of the project as well as benefits arising out of it.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY II) GAP ANALYSIS:GAP analysis is a business toll enabling a company to compare actual performance with the potential performance.

SION 23 .STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 4) Investment centre: A segment which takes care as acquisition and utilization of assets.I. This approach allows to assign the responsibility to sector manager that control activities under that centre. S.E.S COLLEGE OF COMMERCE AND ECONOMICS.

comprehensive IT portfolio.2worldwide. started a turnaround plan that promises to yield $3 billion in annual savings over the next three years.1 PC provider in the U. Based in Round Rock. No. Dell is a global company committed to its customers and employees. Dell set a goal of becoming the greenest technology company on Earth for the long term. Employs more than 82.700 people worldwide.2 HISTORY In 1996. Dell began selling computers via its web site. Earning appr. S. 1 ranking in global market share in 2001. The company launched a zero-carbon initiative. 4. the company’s first notebook computer in 1989. Dell maintains a consistent focus on offering the best value and customer. Direct Business Model is the foundation for Dell’s business. an online tool to provide technical support to customers1999.1 INTRODUCTION Founded in 1984 by Michael Dell.S COLLEGE OF COMMERCE AND ECONOMICS. 2003.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY CHAPTER 4: STRATEGIC MANAGEMENT OF DELL 4. Introduced the 316LT. Dell overtook Compaq to become the largest seller of personal computers in the US. name was changed to "Dell Inc. 1999. $1 million per day 7 months after the launch of dell."‡ 2006. Texas. For the first time. Dell is a trusted technology innovator with a diversified. January 2007. SION 24 . Grew during the 1980s and 1990s to become a brand.com in 1996 Introduced E-Support. and No.I. Dell achieves No.E.S. 2007. Joined the top-five computer system makers worldwide in 1993. Dell purchased the computer hardware manufacturer Alienware.

by February 2010." giving away 1 % of pretax profits to education and digital inclusion projects mainly in emerging markets. Raised their cost-reduction target to $4 billion.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY Recent Developments: In January 2009. SION 25 . Dell announced that they will withdraw all manufacturing from Limerick and move it to its new plant in the Polish city of Lodz by January 2010.S COLLEGE OF COMMERCE AND ECONOMICS. S.E. Product line. Dell also announced that it aimed to become a "one percent company.I.

superior service and support and products and services that are easy to purchase and use. Dell provides quality products to cater the needs of the people.” VALUES:“Their first priority is to be a successful business and that means investing for growth and balancing short term and long term. MISSION STATEMENT:“To provide customers with superb value. high quality.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY 4. relevant technology.” Dell provides a classic example of how the principles of strategic management have been used to translate an innovative vision into a successful and sustainable enterprise.” S. dell supports educational services programs that address the critical and most basic technology access needs of its neighbours in Dell communities prerequisite to success in digital world. They want to be successful in the digital world for this they rely on latest technology.3 KEY TOWARDS STRATEGIC PLANNING VISION STATEMENT:“Through effective and strategic community partnership. Their vision statement basically tells the way they do their business.I.E.S COLLEGE OF COMMERCE AND ECONOMICS. In intend to build good relationship with their customers and suppliers. SION 26 . systems.

GOALS:Goals are the specific interim or the ultimate time based measurement to beachieved. 5. S. The Program of Dell creates opportunities to develop real-world skills in an environment that encourages personal and professional growth and gain exposure.S COLLEGE OF COMMERCE AND ECONOMICS. 4. Thegoal of the organization are set consistent . SION 27 . Dell has got an implementation plan followed up by the above strategic plan. As per survey’s the present major goal of the organization is to adopt the best technologyand appoint few more personnel that would bring efficiency in the organization. PROGRAMS:Last but not the least “program” plays a significant role in maintaining a smooth track within the organization. Modify laptop designs according to student’s preferences.E. 3.I. Double laptop sales in student market.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY OBJECTIVES:Following are the objectives of Dell Corporation 1. It learns the ins and outs of one of the high-tech industries in the same sector. Increase revenues by 25% by the end of the second year of launching. Develop a promotional campaign to promote the modified laptops. achievable and realistic. Increase awareness of the existent agency project objective research strategicplan conclusion. While implementing strategies in pursuit of companies objectives. 2.

Best in class service and support. Financial stability. Flexible customer capacity.S COLLEGE OF COMMERCE AND ECONOMICS. Leading technology. In doing so. Dell will meet its customers expectations of:       Highest quality. SION 28 . Individual and company’s accountability.E. Competitive pricing. “The direct relationship continues throughout the customer experience” S.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY STRATEGY:To do business with its customers one on one through the phone and internet.I.

by developing a sustaining competitive advantage based on organization core competency.S COLLEGE OF COMMERCE AND ECONOMICS. By providing an insight into the forces behind the intense competition. SION 29 .E.I.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY CHAPTER 5: STATEGIC MANAGEMENT PROCESS Strategic thinking provides the foundation of the strategic management. It can be broadly divided into three phases: PHASE 1: STRATEGIC FORMULATION:- Framing mission objectives Analysis of the internal environment Analyze of external environment Gap analyses Framing alternative strategies Choice of strategies S.

: Dell Corporation has in acted gap analyses as it compared the last 5yrs. Choice of strategies:Dell Corporation already has a highly sophisticated server with alternative strategies it chooses the best among the various strategies.S COLLEGE OF COMMERCE AND ECONOMICS.: Dell Corporation manufactures product that are hygienic and long lasting.: Dell Corporation needs more qualified manpower. SION 30 . Analyze of external environment:The management conducts the analyses of the external environment.g. E. 3. 5. Framing mission objectives:The first step adopted by Dell Corporation was to frame the mission and objectives for the organization.I.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY It is referred as a strategic plan 1. Framing alternative strategies:The management needs to frame alternative strategies and accomplish the objectives of the firm. machines adopted by Dell Corporation should be highly Resultant.The performance level with the present level and came with a conclusion that in future they will surely come up with the new brand launch.g. E.g. 2. E. 4. 6. Gap analysis:Management also conducts gap analyses that is for this purpose the management compares and analyses its present performance level and desired future performance level.E. For example mission: The purpose of the organization is to achieve the honor of becoming the best consumer friendly company. Analysis of the internal environment:After setting the mission and objectives the next step is to analyses the internal environment. S.

Step 1: • Formulation of plans.e. programs and projects:Setting strategies will not guarantee success.E. policies and procedures.I. so every organisation also needs to work laboriously in order to achieve the desired results.S COLLEGE OF COMMERCE AND ECONOMICS. Step 2: Project implementation:The project passes through various stages i. Once the strategies are formulated the next stage is strategic implementation. Dell Corporation makes it a point that their concept is achievable. i. programs and projects • Project implementation • Procedural implementation • Resources and allocation • Structural implementation • Functional implementation • Behavioral implementation Step 2: Step 3: step 4: Step 5: Step 6: Step 7: Step 1: Formulation of plans. Dell Corporation has abroad plan which includes the goals.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY PHASE 2: STRATEGIC IMPLEMENTATION:The strategies are formulated for each and every functional area. S. SION 31 .

iii.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY ii. it sets different goals for the delegates. Dell Corporation allocates all its resources in such a way that there is no duplication of work and also aims at avoiding wastage. Their plans are organized in such a way that the results are achieved without any damage or duplications. Step 3: Procedural implementation:Dell Corporation before implementing any new strategies examine all the government regulatory framework. Step 6: Functional implementation:Dell Corporation as an organization implements all its functional plans and its policies.E. clean up phase: Dell Corporation follows follow up action of above listed phases.g. Step 4: Resources and allocation:It deals with the arrangements and commitment of physical financial and hr.g. Step 5: Structural implementation:There is a need for an organizational structure for implement strategies.I.g. S. Step 7: Behavioral implementation:After implementing the strategy an organization studies the behavior of the strategy. e. SION 32 . E. E.S COLLEGE OF COMMERCE AND ECONOMICS. Dell Corporation studies the impact of its strategies by keeping a small conference meeting with all its divisional heads. Dell Corporation before dealing with any foreign company needs to be aware of all the export and import charges. Dell Corporation follows the divisional structure and therefore the implementation strategy moves on division wise.

Dell Corporation could not procure better spare parts from the company it used to buy earlier.g.g. Step 2: Measurement of performance:The next step is to measure the actual performance with the planned one. E. Step 1: Setting standards Step 2: Measurement of performance Step 3: Finding out deviation Step 4: Analyzing deviations Step 5: Taking corrective measures Step 1: Setting standards:Dell Corporation in order to initiate control is done by setting standards and making them aware of the tolerance limit they should keep. E. Step 5: Taking corrective measures:The top level management of Dell Corporation will analyze the blockage and give an alternative. E. the organizational heads compares the set targets with the achieved one.S COLLEGE OF COMMERCE AND ECONOMICS.E. while implementing a strategy for a new branded product Dell Corporation faced a difficulty as the packaging of that product was done with the help of low quality plastic. SION 33 . Step 3: Finding out deviation:At this step the organization pin points the deviation or blockages if any. Step 4: Analyzing deviations:Here the top executives are the cause of deviations.I.g. The emotional bonding was the main cause for its dependence of that company providing low quality spare parts. E. in order to remove the blockage Dell Corporation may replace the low quality spare parts and find out other good quality plastic at the low price.g. S.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY PHASE 3: STRATEGIC EVALUATION AND CONTROL:It is the phase in which the manager tries to assume that the strategic choice is properly implemented and is meeting the objective of the organization.

and sells an extensive selection of peripheral hardware and computing software.  But are faced with the problem of slipping sales in the U.S.S COLLEGE OF COMMERCE AND ECONOMICS.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY CHAPTER 6: CONCLUSION  Dell computer is successful in global markets as a result of best understanding of customers' needs and their direct sell business model.  The company designs and customizes products and services to the requirements of the organizations and individuals. They are being forced to look at alternative ways of bringing revenue to the company and will be able to tackle this situation and would maintain a tight grip on the market due to their cost leadership and because of their coming strategies.  It has focused on customization and maintaining low cost that has been very profitable for the company.I.  Dell is a well known name in the world that has been very successful towards its mission. asset recovery and product design S. SION 34 .E.  Dell's environmental programs for product for environment have spanned more than a decade.

 Dell must improve its customer service representatives’ selection process. ensuring they are easily understood and well trained. Dell must improve its customer service representatives’ selection process. By improving this segment of business Dell can once again clearly differentiate itself from rivals HP and IBM. This high ownership among Whites and Asians makes it difficult for Dell to grow in this demographic segment. Whites and Asians are much more likely to use and own computers than their Black or Hispanic counterparts. S.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY RECOMMENDATIONS  Dell’s lead in customer service and support has declined in recent years.  Dell must pursue relationships with only those suppliers that are able to integrate seamlessly with Dell’s supply-chain. To rectify this problem. SION 35 . This strategy will allow Dell to offer additional choices for its customers while maintaining production efficiencies.S COLLEGE OF COMMERCE AND ECONOMICS.  There is a stark discrepancy in computer use among ethnicities.I. Declining training and the outsourcing of customer service and support has damaged its reputation.E.

Y.scribd.E.a spx S.I. SION 36 .chron.htm  http://smallbusiness.com/doc/51862116/Dell-Strategic-Management  http://www.balancedscorecard.com/strategic-management-process.STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY bibliography BOOKS: Strategic management (M.html  http://www.org/BSCResources/StrategicPlanningBasics/tabid/459/Default.com –I) By Manan Prakashan  Strategic management (T.BBI) By Arun D Sawant WEBSITE: http://www.com/five-stages-strategic-management-process-18785.S COLLEGE OF COMMERCE AND ECONOMICS.managementstudyguide.